FUEL FOLLY

There’s currently talk of suspending the $0.184/gallon federal gasoline tax. This would not only cost the Treasury $3.5 billion/month, but it’s bad policy, by inverting market signals that encourage conservation with a push towards increased consumption. Instead, use the money to give all 130 million US households a check for $27/month so they can spend the money how they wish. Then, because gasoline is not deliberately subsidized, consumption will fall.